Mr. President, I can say with certainty that not one of the 100 Members of the Senate approaches the work ahead of us this week with a sense of glee. The past American century has been defined, in no small part, by the manufacturing…
Mr. President, I can say with certainty that not one of the 100 Members of the Senate approaches the work ahead of us this week with a sense of glee.
The past American century has been defined, in no small part, by the manufacturing ingenuity, raw power, and limitless possibilities embodied by our automobile industry.
Packard, Nash, Studebaker, Hudson, Plymouth, they are all gone. There are others. Ford, General Motors, and Chrysler are American icons. Yet we now see that all three teeter on the brink of collapse, due in no small part to their own ineptitude.
Although the blame for this desperate state falls squarely on the shoulders of those who run the Big Three, the consequences of their failures could broadly impact our entire country. The jobs of millions of American workers are at stake, along with the financial security of millions of families. So while we take no satisfaction in loaning taxpayer money to these companies, we know it must be done.
Today, the stock market, which will be open for a few minutes more, a little over an hour, today was up by more than 300 points as I walked into the Chamber today. Why? Because Congress is trying to save Detroit. We must act, not to reward the executives of the Big Three for their failures but to invest in the millions of Americans who could face the consequences of their failures.
I strongly disagree with the Bush administration's refusal to use funds from the Troubled Asset Relief Program. They should have done it. TARP, that is what it is called. These monies, we believe, should be used to help the auto industry.
Speaker Pelosi, Chairman Dodd, Congressman Frank, and I wrote the President last week, urging him to act because of the financial risks of the collapse of one or more of the Big Three. The President's refusal to do so requires Congress to take action.
I wish to especially thank Senator Chris Dodd and Congressman Barney Frank, who worked through the weekend to come up with legislation that will give the automakers a chance to clean house and return to a responsible path toward profitability. It was literally of no personal benefit to Senator Dodd and Congressman Frank for doing what they did; it was simply the right thing to do. Their staffs have been heroic soldiers, in their legislative efforts, working literally around the clock for the last 4 or 5 days.
And because of their efforts; that is, the two chairs and their valiant staffs, we have legislation before us, or soon will have, that will provide funds to see the auto companies through to the end of the first quarter of next year.
But this is no blank check or blind hope. If the companies fail to develop a plan that will lead to long-term competitiveness and profitability, if they fail to stick to that plan, the loan can be recalled. That is what the intended law says. We require strong oversight, executive pay standards, and taxpayer protection, such as warrants and a prohibition on dividends, to ensure that taxpayers stand to benefit if and when this plan succeeds.
There is no perfect or good answer to this problem. No solution will satisfy everyone and no legislation would be cause for celebration. But if Senators are willing to work together the next few days, we can pass legislation that represents good legislation, though not perfect, that will enable America's largest single manufacturing base to continue and, in the immediate future, bound forward once again to be the power of America's manufacturing sector.